COMMENTARY: As I am sure you are keenly aware by now – Britain has decided to leave the European Union – a bloc it’s been a member of since 1973.  The uncertainty created by this unprecedented event has sent markets of every description around the world reeling – as the first knee-jerk reaction among the investment community is to flee risky asset classes like stocks for the comparative safety of U.S. dollar denominated assets like Treasury debt obligations and mortgage-backed securities – at least temporarily.  The news media will be touting a major sell-off in the stock markets and creating whatever equally scary sub-titles they can think of to sell papers and keep viewers’ attention during the 15-minutes between commercials.

By this time on a day

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>> Market Update 

QUOTE OF THE WEEK... "I have enough money to last me the rest of my life unless I buy something." --Jackie Mason, American comedian

INFO THAT HITS US WHERE WE LIVE ... Money was a big topic last week, as the Fed meeting dialed up discussions about the cost of money--in other words, interest rates. As far as mortgage rates are concerned, Freddie Mac's chief economist had this to offer: "Wednesday's Fed decision to once again stand pat on rates, as well as growing anticipation of the U.K.'s upcoming European Union referendum will make it difficult rates to substantially rise in the upcoming weeks." It seems the window of opportunity to take advantage of today's low mortgage rates should stay open a little bit longer

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COMMENTARY: Mortgage interest rates largely traded sideways this week as investors remained cautious in front of Wednesday’s Fed meeting and next week’s British referendum vote.  If you’re not up on the Britain scenario, voters in Britain will cast ballots next Thursday to determine whether the UK remains a member of the European Union.  The latest polls are swinging wildly, but most observers are giving a slight edge to the “Exit” camp.  If this assessment proves accurate, the global financial markets will be awash in uncertainty -- which will almost certainly ramp up “flight-to-quality” buying of U.S. dollar denominated assets like Treasury debt obligations and mortgage-backed securities – and that is good news for the prospects of steady to perhaps

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>> Market Update 

QUOTE OF THE WEEK... "How wonderful that we have met with a paradox. Now we have some hope of making progress." --Niels Bohr, Danish physicist

INFO THAT HITS US WHERE WE LIVE ... The Nobel Prize winner quoted above would no doubt have been encouraged by the somewhat contradictory findings of Fannie Mae's latest survey. Their Home Purchase Sentiment Index (HPSI) hit an all-time high in May, as more people than ever said it would be a good time to sell their homes. Unfortunately, fewer of those consumers felt it was a good time to buy. This seeming paradox can be resolved by noting that home prices, nationally, continue to climb. This is appealing to sellers, but when they then become buyers, many are hampered by the slow wage

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COMMENTARY: As the saying goes, here’s something you don’t see that often.  According to the May 2016 Job’s Report issued today from US Labor Department statisticians -- employers added the fewest number of workers during the month going all the way back to September 2010. Wow!  Investors will be scratching their heads for some time wondering how there could be such a significant disconnect between this week’s ADP report showing employers added 173,000 jobs in May – and this morning’s Labor Department report suggesting the ADP number was too high by 135,000 jobs.  Many are already predicting that this report will be upwardly revised next month to something near 125,000 – still lower than economists and market participants had expected to see – but well

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COMMENTARY:This week’s reports on April New Home Sales, April Durable Goods Orders and the revised second-quarter Gross Domestic Product figures were expected to be the primary items affecting mortgage rates as we headed into the Memorial Day Weekend.  Irrespective of Wednesday’s new home sales unexpected 16.6% increase, mortgage rates remained relatively unchanged if not a bit lower.  Additionally, the mortgage market closed early at 2:00 p.m. today and it will remain closed on Monday, May 30th for the Memorial Day Holiday.

Looking ahead to next week, the most significant impediment to the prospects for lower mortgage interest rates is the “will they – or won’t they” debate raging among investors regarding the likelihood of a 25 basis-points rate hike

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>> Market Update 

QUOTE OF THE WEEK... "Every morning, I get up and look through the 'Forbes' list of the richest people in America. If I'm not there, I go to work." --Robert Orben, American professional comedy writer

INFO THAT HITS US WHERE WE LIVE ... Plenty of home builders went to work last month, as Housing Starts shot up 6.6% in April to a 1.172 million unit annual rate. Some negative Nellies pointed out starts suffered a big decline in March, so April's number is still down 1.7% from a year ago. But that's actually all due to a slow-down in multi-family construction. Single-family starts are up 4.3% the past year. Likewise, new building permits for single-family units are up 8.4% versus a year ago, while overall permits were up 3.6% in

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COMMENTARY: As the week draws to a close mortgage interest rates have drifted fractionally higher as evidenced by today’s ratesheet.  Mortgage investors have become increasingly skittish with news from the Labor Department indicating inflation pressure is rising at the consumer level and Wednesday afternoon's “heads up” from the Fed indicating the central bank is ready to institute another rate hike – perhaps as early as the mid-June.  This morning’s news from the National Association of Realtors showing existing homes in April posted a solid 1.7% month-over-month gain drew nothing more than a passing glance from mortgage investors.

The coming week will feature April New Home Sales on Tuesday, April Durable Goods Orders on Thursday, and a look at

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Investors who normally would look to finding a distressed property and doing a remodel  are now flocking toward properties that would make a good rental because of income potential and cash flow. The perception is now that house 'flipping' is out, while becoming a landlord is the new in and it's easy to see why.

Rents have been skyrocketing during the past year growing at almost 3.5% during the past year alone which brings them near a seven year high. Now investors can realize not only a steady stream of income, but the prospect of an even higher stream of income in the coming years ahead. When you look at what savings accounts and government Treasury bonds are paying, the rental returns look pretty darn juicy to many Americans.

The demographic of

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>> Market Update 

QUOTE OF THE WEEK... "The way to get started is to quit talking and begin doing." --Walt Disney, American entrepreneur and animation pioneer

INFO THAT HITS US WHERE WE LIVE ... There's always lots to talk about in the housing market, but happily what more people have begun doing is actually buying homes. The National Association of Realtors (NAR) reported existing home sales saw their best first quarter in almost a decade. The NAR chief economist painted this picture: "In spite of deficient supply levels, stock market volatility and the paltry economic growth seen so far this year, the housing market did show resilience and had its best first quarter of existing sales since 2007." For single-family homes and condos, that was a

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